(Source: Mantle Ridge press release, February 14, 2017)
NEW YORK — Mantle Ridge LP, an investment firm formed by Paul Hilal, which owns approximately 4.9% of the outstanding common shares of CSX Corp., today responded to the announcement that CSX will hold a special meeting of shareholders.
Paul Hilal, Founder and CEO of Mantle Ridge, said, “We are pleased that CSX agrees that change is needed, and note that CSX enjoyed a $10.4 billion increase in market value since January 18, 2017 reflecting optimism that Mr. Harrison may join as Chief Executive Officer, and effect a transformation of CSX to a Precision Scheduled Railroading model. We have been engaged in constructive dialogue with CSX’s Board for several weeks. While we had hoped to reach a negotiated agreement, we appreciate that CSX shareholders will have the opportunity to make their voices heard on the optimal governance and compensation structure that will create the conditions for a successful transformation. We remain fully confident in a favorable outcome for CSX and its shareholders and are excited for the future.”
Hunter Harrison added, “If we create the right conditions for success, we have the best chances for success.”